Taking a leaf out of Kerala's book, the banking fraternity in Odisha has agreed in principle for providing consumption loans to the tune of Rs one lakh to the people affected by cyclone Fani.
“The Kerala structure of providing consumption loans has been approved at the ‘special’ State Level Bankers Committee (SLBC) meeting held as the situation is grim in Odisha due to Fani. The Rs one lakh consumption loan will help in bringing the people of the state back to normalcy”, said an official.
Under the Kerala model adopted during the floods that ravaged the coastal state in 2018, the loan was provided at the rate of nine per cent interest and the burden of repayment of interest was shared by the state government. The beneficiaries were entitled for repayment of principal amount of the consumption loan only.